David Einhorn (Trades, Portfolio)'s Greenlight Capital disclosed an equity portfolio valued at some $5.47 billion as of the end of the fourth quarter of 2015. The equity portfolio is mainly invested in Consumer Discretionary (33%), Technology (20%) and Industrials (18%) stocks.
Among the 10 largest holdings from Greenlight Capital’s equity portfolio (which amass 59.07% of the total portfolio value) at the end of December, the top three are: Apple Inc. (AAPL, Financial), General Motors Co. (GM, Financial) and Time Warner Inc. (TWX, Financial).
In Apple, the fund holds 6.28 million shares, down by 45% on the quarter; the value of the stake amounts to $661.5 million. The company has two important things in the tech world: experience and expertise. Apple’s success integrating hardware, software, services and third-party applications into differentiated devices helps the firm remain on top of market share.
Despite strong competition and shorter life cycles, Apple manages to switch costs related in the iOS platform, increasing the probability of future purchases from existing clients. Its stellar product, the iPhone, has integrated hardware and software, increasing loyalty from customers and attracting new ones. Apple has an admirable position to continue expanding in new markets, retaining customers and gaining new sales, based on innovation in Apple Pay, Apple Watch and Apple TV. The company's largest shareholder among the gurus is activist investor Carl Icahn (Trades, Portfolio), with 45.76 million shares, valued at $4.82 billion, held as of the end of the fourth quarter 2015.
General Motors represents the second-most valuable investment in the fund’s portfolio. The fund held about 13.92 million shares valued at $473.6 million at the end of the last trimester of 2015. With a market cap of $48.17 billion, the stock is down by 8.5% on a year-to-date basis. Warren Buffett (Trades, Portfolio) held a stake of 50 million shares of General Motors valued at $1.70 billion.
No one can doubt that the car models are characterized by their quality and design. Moreover, General Motors is strong in the truck market.
The firm’s earnings potential is something positive as well. Analysts at Bank of America (BAC, Financial) have reiterated their buy rating. Further, the target price is at $39.43, a 27.4% upside potential from the stock's current price.
Time Warner is the third-most valuable investment in the fund’s portfolio. The fund amounted to about 6.44 million shares valued at $416.49 million. Einhorn upped his stake by 69%, and the stock has surged by 12% since. The company has changed, and its portfolio of basic cable networks (including CNN, TNT and TBS) generates about half of consolidated EBITDA. Further, HBO generates about 25% of EBITDA, and it will continue to grow due to original content.
Disclosure: As of this writing, Omar Venerio did not hold a position in any of the aforementioned stocks.
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